Title
SR85 Landfill Gas Recommendation for Award - RFP 17-SWDD-087 (Ordinance S-43776)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Ameresco, Inc. (Ameresco), or its City-approved designee for landfill gas-to-energy development; and to enter into a land lease agreement at the City of Phoenix State Route 85 (SR85) Landfill. Further request authorization for the City Treasurer to accept and for the City Controller to disburse all funds related to this item.
Report
Summary
Landfill gas has been collected at the SR85 Landfill since 2006. Under this new agreement, Ameresco will take the gas collected at the landfill, convert it to energy and sell it. Ameresco will return to the City a percentage of gross revenue derived from sales. Actual revenues will depend on a number of factors, including landfill gas quantity and quality, processing costs and market conditions. The City will lease designated land to Ameresco for the purpose of performing the work within the scope of this agreement.
Procurement Information
Request for Proposals (RFP) 17-SWDD-087 - SR85 Landfill Gas was conducted in accordance with Administrative Regulation 3.10. On March 3, 2017, the Public Works Department issued an RFP seeking proposals from landfill gas-to-energy developers. Three responsive submittals were received on April 14, 2017.
An evaluation panel made up of staff from the Public Works Department, Water Services Department, the Office of Environmental Programs, and the City Manager's Office reviewed the proposals on the following criteria: developer’s business plan, compensation to the City, developer’s qualifications, and project schedule. The results are as follows:
Ameresco: 893 points
DTE Biomass Energy: 757 points
Fiber Recovery, Inc.: 288 points
The panel unanimously recommended the proposal from Ameresco.
Contract Term
The initial contract term is 20 years, with five two-year options, which may be exercised by the City Manager or his designee.
Financial Impact
There is no cost to the City for this agreement. Under current market conditions, revenues are estimated to be $250,000 annually.
Location
The SR85 Landfill is located at 28361 W. Patterson Road., Buckeye, Ariz.
Concurrence
The Transportation and Infrastructure Subcommittee recommended City Council approval of this item on June 13, 2017, by a vote of 4-0.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works Department.